The Nifty is pausing in the 16,200-16,300 zone but the overall texture remains bullish where 16,000-15,900 is an immediate demand zone and 15,770 is a sacrosanct support mark.
On the upside, if it manages to breach the 16,300 level, then we can expect a rally towards 16,500-16,600 levels.
The Bank Nifty is outperforming. But 35,500 is acting as a minor hurdle; above this, we can expect a rally towards 36,000-36,500 levels. On the downside, 35,000-34,800 is an immediate demand zone, while 34,350 is a sacrosanct support level.
The put-call ratio again slipped to oversold territory and there is further scope for a short-covering rally as FIIs' long exposure in the index future is sitting only at 27 percent.
A sharp rise in the dollar index is a concern for the market whereas global markets are looking cautious ahead of US inflation numbers. On the domestic front, we will react to IIP and inflation numbers on Wednesday.
Here are three buy calls for next 2-3 weeks:
Indian Bank: Buy | LTP: Rs 175 | Stop-Loss: Rs 155 | Target: Rs 210 | Return: 20 percent
The counter is witnessing a breakout of classical symmetrical triangle formation with strong volumes on the daily chart. The overall structure is very bullish as it trades above its all-important moving averages and most of the momentum indicators are also positively poised and are indicating further rally in this counter.
On the downside, a cluster of moving averages placed at Rs 155 level which will act as a strong support level.
EID Parry: Buy | LTP: Rs 563 | Stop-Loss: Rs 520 | Target: Rs 634 | Return: 12 percent
The counter is coming out of a long consolidation with strong volume. The pattern suggests an immediate target of Rs 620, while it has the potential to move further upside till Rs 634 level.
On the downside, Rs 520 will act as an immediate support level. MACD (moving average convergence divergence) is supporting the current strength whereas momentum indicator RSI (relative strength index) is also positively poised.
Adani Wilmar: Buy | LTP: Rs 648 | Stop-Loss: Rs 570 | Target: Rs 780 | Return: 20 percent
The counter has a strong bullish setup where it witnessed a breakout of triangle formation on the longer timeframe. It has created a strong base at Rs 550 level after hitting a fresh 52-week high.
On the upside, Rs 700 is an immediate resistance area; above this, we can expect a run-up towards Rs 780 level in the near term. On the downside, Rs 570 is major support at any correction.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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